News

LG Electronics Unveils LCoS Rear Projection Televisions Incorporating SpatiaLight Microdisplays (20/1/2005)

LG Electronics Inc. and SpatiaLight, Inc. (NASDAQ:HDTV) , made the following joint announcement today:

LG Electronics privately demonstrated 71-inch and 62-inch models of liquid crystal on silicon (LCoS) 1080p rear projection televisions at the international Consumer Electronics Show in Las Vegas, held earlier this month. These televisions incorporate SpatiaLight's state of the art 1920 pixel by 1080 pixel resolution LCoS microdisplay devices (LCoS Sets). The pre-production televisions were very well received by significant target customers of LG Electronics and by other industry guests.

LG Electronics is currently planning an initial rollout of the 71-inch and 62-inch LCoS televisions commencing in the second quarter of 2005, subject to the completion of pre-production requirements. The initial product rollout will be into the United States, Korean and Australian consumer markets, with future plans for expansion into other markets. LG Electronics believes that the LCoS projection televisions will be a competitive product in the large-sized television market.

In July 2004, LG Electronics and SpatiaLight entered into an LCoS Supply Agreement, under which LGE committed to purchase from SpatiaLight a minimum of 21,000 LCoS Sets over an initial six-month delivery period. Based upon progress to date, it is currently anticipated that the initial six-month delivery period for the LCoS Sets will begin in March 2005, which is consistent with LG Electronics' current product rollout plan, but subject to the completion of pre-production requirements. Under the agreement, commencing in the first delivery month, LG Electronics is required to provide SpatiaLight with rolling monthly firm purchase orders six months in advance of the scheduled delivery and rolling twelve-month advance projections of its anticipated future orders. Although the agreement does not contain any minimum purchase requirements after the initial six-month delivery period, it projects that LG Electronics will commence larger mass-production scale purchases of LCoS Sets from SpatiaLight in the latter part of 2005. The parties' rights and obligations under the agreement and LGE's plan to rollout the LCoS projection television products are subject to a limited quantity of trial LCoS Sets, a majority of which have been delivered to LGE, meeting final specifications. Since the signing of the agreement, LG Electronics and SpatiaLight have been actively working together on developing LCoS rear projection television products.

The agreement provides that SpatiaLight will be the exclusive supplier of three-chip 1080p high definition LCoS microdisplay products to LG Electronics in 2005 and potentially in 2006 as well. LG Electronics will have the exclusive right in Korea to purchase 1080p high definition LCoS microdisplay products from SpatiaLight in the first half of 2005 and potentially in the second half of 2005 and 2006 as well.

Havis Kwon, Executive Vice President and General Manager of LG Electronics Display Division -- Television and Monitors, stated, "LG Electronics is excited to announce our plan to begin product rollout of LCoS rear projection televisions into major consumer markets. We believe that this product, incorporating the SpatiaLight microdisplay sets, has the potential to be an important part of our high definition rear projection television lineup."

David Hakala, Chief Operating Officer of SpatiaLight, commented, "SpatiaLight is excited that LG Electronics is planning to bring its LCoS based products to market in the coming months. It is an honor conducting business with the fine people at LG Electronics. I expect this to be the beginning of an exciting time for both LG Electronics and SpatiaLight."

www.lge.com
www.spatialight.com